Debts 02 - Govt etc (Nov 16 - Dec 24)

[winston]

China: The Bears Who Cried Wolf? Why China’s Debt Won’t Trigger a Crisis

By Reshma Kapadia

China - much of the debt is held domestically. Collateral prices ---in this case property--have also been rising and corporate profitability is beginning to improve as the country reforms state-owned enterprises.

Lending practices have changed and they have absorbed about 20% of the non-performing loans,”.

Source: Barron's

https://www.barrons.com/articles/the-be ... yptr=yahoo

[winston]

US Debts

Since September 2010, when non-mortgage consumer credit bottomed at $2.5 trillion, it has rebounded at its fastest pace ever.

Today, Americans owe $3.7 trillion in outstanding consumer credit. That's $1.2 trillion of additional consumer spending, created out of thin air (not savings) in just eight years.

During the same period, the federal government increased its debt from $14 trillion to more than $20 trillion. Our government borrowed an additional $6 trillion in less than a decade.

Total outstanding non-financial corporate debt has doubled since 2005, from around $3 trillion to more than $6 trillion, with most of the growth coming from non-investment-grade borrowers.

Like our government, corporations have borrowed more in the last decade than ever before – more than a 100 years' worth of debt has been issued. And almost all of it went to either buying other companies or buying back shares.

When you put all of these numbers together, you'll see that we've borrowed something on the order of $20 trillion in just the last eight years. That's more than our entire GDP!

Source: Daily Wealth

[winston]

Fresh warnings to debt-ridden China of living on borrowed time

International Monetary Fund, ratings agency both raise red flags about country’s liabilities

Ratings agency Moody’s and the International Monetary Fund have both issued fresh warnings about China’s debt in the past week.

In the first nine months of the year, the total liabilities of local SOEs, including local government financing vehicles (LGFVs), rose by nearly 21 per cent to 47.6 trillion yuan (US$7.19 trillion), according to data from the Ministry of Finance.

That total was nearly triple the 15.9 trillion yuan in direct debt held by local governments at the end of June.

Source: SCMP

http://www.scmp.com/news/china/economy/ ... rowed-time

[winston]

Global Debt Tops $230 Trillion

By Douglas A. McIntyre

The Institute of International Finance reported that global debt reached over $230 trillion at the end of the third quarter. That is up $16 trillion from the end of 2016.

By comparison, the U.S. national debt is $20 trillion.

In the second place, the United Kingdom has debt of $7.9 trillion.

At number three, France has debt of $5.4 trillion.

Rounding out the top five, Germany has debt of $5.1 trillion and the Netherlands has debt of $4.3 trillion.

U.S. household debt is just shy of $13 trillion.

http://247wallst.com/economy/2018/01/05 ... Newsletter

[behappyalways]

Global debt level hits $233 trillion record high in Q3 2017:IIF
https://www.cnbc.com/2018/01/05/global- ... 17iif.html

Global Debt Tops $230 Trillion

By Douglas A. McIntyre

The Institute of International Finance reported that global debt reached over $230 trillion at the end of the third quarter. That is up $16 trillion from the end of 2016.

By comparison, the U.S. national debt is $20 trillion.

In the second place, the United Kingdom has debt of $7.9 trillion.

At number three, France has debt of $5.4 trillion.

Rounding out the top five, Germany has debt of $5.1 trillion and the Netherlands has debt of $4.3 trillion.

U.S. household debt is just shy of $13 trillion.

http://247wallst.com/economy/2018/01/05 ... Newsletter

[winston]

China Has a Great Wall of Debt Coming Due

4 trillion yuan of bonds must be repaid this year by Chinese companies

Source: Bloomberg

https://www.bloomberg.com/news/articles ... gn=markets

[winston]

The Greatest Long-Term Threat to Stocks

by Alexander Green

Some believe high valuations will be the killer. Yet history shows that high ratios of price to sales, earnings or book value rarely cause stocks to roll over.

Unfunded liabilities for Social Security, Medicare and Medicaid -The current gap between the expected cost and the expected revenue for these three programs is $112 trillion – or more than $922,000 per taxpayer.

Source: Investment U

http://dailytradealert.com/2018/01/23/g ... at-stocks/

[winston]

Another warning signal is flashing under the surface

Consumer debt is already at higher levels than it was in 2008. Crime is setting all-time highs in cities like Baltimore and Chicago. Now, one of America’s oldest and greatest businesses is collapsing before our eyes.

Today, we learned from the latest GDP report that personal savings in the U.S. fell to its third-lowest rate on record.

The reason: Consumers are already loaded with too much debt.

Savings rate slumped to 2.6 percent as a share of disposable income, its third-lowest on record.

Source: Daily Crux

http://thecrux.com/why-the-savings-rate ... -s-growth/

[winston]

Japanese Debt

Japan’s government debt is more than 1 QUADRILLION yen (over $10 trillion) and more than twice the size of the entire economy.

This debt is so large that in the 2018 budget that was just released last month, the government reported that it will take more than 40% of tax revenue to make debt payments this year.

Source: Sovereign Man

[winston]

We Choose Debts

The US government is already nearly $21 trillion in the hole and spending hundreds of billions of dollars each year just to pay interest on the debt.

In Fiscal Year 2017, in fact, the Treasury Department reports that interest payments on the debt hit a new high of $458,542,287,311.80.

That’s about 15% of federal government tax revenue… just to pay interest.

On top of that, the government spent another $2.15 trillion on Social Security and Medicare, and $720+ billion on Defense spending.

So-- just between interest, Social Security, Medicare, and Defense, they spent $3.3 trillion.

Total tax revenue was only $3 trillion to begin with.

So before they paid for ANYTHING else… National Parks, Homeland Security, infrastructure, foreign aid, or even paid the electric bill at the White House, they were hundreds of billions of dollars in the hole.

On top of that, the federal government has entire trust funds that are completely insolvent.

Both the Federal Highway Fund and the Disability Insurance fund, for example, have been bailed out within the last two years.

And there are several more, from the Pension Benefit Guarantee Corporation to Social Security itself.

This amounts to literally tens of trillions of dollars in liabilities; according to the Treasury Department’s own estimates from Fiscal Year 2016, its long-term liabilities amount to $46.7 trillion.

Source: Sovereign Man